Rosseti Calls for Tougher Penalties on Illegal Crypto Mining

Russian power grid operator Rosseti has proposed stricter measures against illegal cryptocurrency mining, warning that unauthorized connections to power lines threaten energy stability across several regions.

Rosseti warns of growing power shortages

Russia’s state-controlled energy holding, Rosseti, has proposed harsher penalties for illegal cryptocurrency mining. The company said unauthorized power hookups are creating a major strain on regional electricity networks and contributing to growing capacity shortages.

According to Daniil Krainsky, Rosseti’s deputy general director for legal affairs, unregistered mining farms consume massive amounts of power while evading both taxes and electricity fees. This, he explained, disrupts the stability of the national grid and distorts fair market conditions for compliant consumers.

Illegal mining cases surge across Russia

The issue is particularly severe in the North Caucasus Federal District. In just the first nine months of this year, Rosseti uncovered 94 cases of power theft by illegal miners worth more than 622 million rubles.

Krainsky noted that enforcement remains challenging due to difficulties in identifying farm owners and the absence of consistent legal practices among law enforcement agencies.

Proposed legal reforms for the mining sector

Rosseti has called for legislative amendments to strengthen penalties for illegal crypto mining and clarify the legal framework for the industry.

The company believes clearer regulations will help prevent regional power shortages, ensure fair tariff distribution, and attract new investments into Russia’s legal crypto mining sector.